Louis Vuitton 2008 Annual Report Download - page 52

LVMH010_2008_GB:Mise en page 1 24/03/09 11:14 Page 53
Selective
Retailing
Development of the global
network
More than 140 new stores were opened in 2008
in all regions where Sephora is present (Europe,
North America, Asia and the Middle East). This
number reflects the global success of its concept
and its ability to finance its growth from its own
resources. Sephora expanded within its key
markets and entered four new countries: the
Netherlands, Kuwait, Hong Kong and Singapore.
In addition to new stores, the policy of renova-
ting the network actively continued, particularly
in France.
As of December 31, 2008, Sephora’s global
network represented 898 stores in 23 countries.
Europe had 603 stores, North America 227 (inclu-
ding 215 in the United States and 12 in Canada),
Asia had 52 stores, and the Middle East, entered
for the first time in 2007, 16 stores. In October
2008, in order to expand its presence in the high-
potential Russian market, Sephora acquired an
interest in the second largest local operation in
perfume and cosmetics retail, which holds nearly
100 stores under the Ile de Beauté brand name.
This stake is consolidated using the equity
method.
Revenue from the shopping websites sephora.com
(United States and Canada), sephora.fr (France)
and sephora.cn (China) continued to grow signi-
ficantly. These sites are among the leaders in their
reference market.
Ongoing innovation
By focusing on its policy of differentiation, Sephora
continued to develop its image as the most dyna-
mic name in beauty. Ongoing innovations in its
product offer and merchandising, the quality of
the events organized at its stores, and the services
offered to customers are the key components of
this policy.
In 2008, Sephora resolutely continued to carry
innovative skincare and make-up brands offered
exclusively to its customers, such as
Tri-Aktiline ,
Rexaline , OPI for Sephora , L’Herboriste ... After
discovering in the United States a number of these
brands and promoting their development, Sephora
also turned to other countries in the world and is
now offering exclusive products from India and
Korea, for example.
The Sephora brand products recorded very steady
growth on all continents. Sales of these products,
which offer excellent quality at an attractive price,
were driven by the ongoing renewal of product
lines and the conquest of new market segments
like bio products (Sephora Green Connection).
The range of innovative services and skincare
products offered in the stores (express make-up,
flash skin care, make-up lessons, Beauty Bars etc.)
was enhanced with hair care services related to
the launch of "trendy" new hair care brands.
The other priority performance drivers, the increa-
singly sophisticated loyalty programs implemen-
ted by Sephora in Europe and the United States in
order to promote direct contacts with customers,
continued to grow.
▼ Sephora in Hong Kong
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